Credit houses in Asia have recently been in talks about expanding the iTraxx Asia credit derivatives index to incorporate a broader array of names. "The increase from 30 to 50 names is pretty much agreed upon, it's more of a matter of deciding on which credits," said one credit head. He expects the new index to be broader-based and incorporate several names from Thailand and India as well as include Indonesia.
Houses are hoping to have the discussions wrapped up in the next few weeks and launch the broader index on the next roll of the iTraxx on Sept. 20. A credit trader at a bulge bracket house said a larger pool of names will make the index more diversified and facilitate a greater volume of structured trades. The index can be used as a benchmark or a hedging tool for structured products exposure.
